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Suppose you observe the following zero-coupon bond prices per $1 of maturity payment: 0.94455 (1-year), 0.88748 (2-year), 0.82112 (3-year). Compute r 0(2,3), the 1-year implied

Suppose you observe the following zero-coupon bond prices per $1 of maturity payment: 0.94455 (1-year), 0.88748 (2-year), 0.82112 (3-year). Compute r 0(2,3), the 1-year implied forward rate for year 3.

a. 5.83%

b. 15.03%

c. 8.95%

d. 8.08%

e. 6.27%

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